NewEnergyNews: EU F-I-T DROPPING/

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    Sunday, September 12, 2010

    EU F-I-T DROPPING

    Italy Reduces Solar Incentives
    7 September 2010 (Solar Industry)
    and
    France Needs to Cut Solar-Energy Subsidies Further, Government Study Says
    Tara Patel, September 6, 2010 (Bloomberg News)

    "France needs to revise targets for solar energy and further cut subsidies to curb costs to consumers that may balloon to 54 billion euros ($70 billion) by 2020, according to a government report…New installations should be capped at 300 to 500 megawatts a year…

    "…France is on track to surpass its 2020 target for installed solar capacity by 2013 as companies rush to profit from inflated tariffs…[The French government had already said] it would cut the so-called feed-in tariff Sept. 1 for a second time since January…Rapidly declining costs for making photovoltaic panels are forcing governments to reduce subsidies shouldered by consumers…"


    The point is to match the return on investment to the conceptual intent. (click to enlarge)

    "…Applications to Electricite de France for connecting photovoltaic capacity to the grid rose more than four-fold to 80,000 in 2009…to 4,670 megawatts, or 90 percent of the 2020 target…About 80 percent of the applications were for large installations on industrial or farm buildings…If the trend continues, installed capacity will reach 17,000 megawatts in 2020 and cost consumers more than 4.5 billion euros annually, according to the report. This could translate into a 200 euro annual surcharge per household heated by electricity…

    "…Feed-in tariffs require utilities to buy electricity generated by renewable sources such as solar panels and pay more than the standard rate…Spain also plans to cut solar prices while Germany reduced the price for sun-generated electricity from July."


    Following the masterful German lead, EU nations are lowering the incentive in response to the increasing market activity. (click to enlarge)

    "The Italian Conferenza Stato e Regioni - the country's committee of representatives and the central government - plans to adjust national feed-in-tariff (FIT) levels. The new levels will take effect Dec. 31…

    "Funds allocated to solar electricity generated by open-space systems with a capacity up to 5 MW will be cut by 9.3% - on average - during the first four months of 2011…Incentives for systems with a capacity of 5 MW and greater will be decreased by 14.2%. Adjustments for rooftop systems are between 4.75% and 13.28%, depending on the size of the system. Tariffs will be reduced every four months in 2011…"

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